Audit 410693

Finding 2025-003 (Repeat finding 2024-003) – All Federal Programs Noncompliance – Reporting Compliance Requirement: Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2025 was not submitted to the Federal Audit Clearinghouse on a timely basis. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Effect – By not submitting information to the Federal Audit Clearing House on a timely basis, the Organization may be at risk for losing federal funding. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2025 should have been submitted to the Federal Audit Clearinghouse by March 31, 2026. Recommendation – We recommend management ensure the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management concurs with the finding, see Corrective Action Plan.

Finding 2025-004 – U.S. Department of Housing and Urban Development – Continuum of Care Homeless Assistance Competition, 14.267 Noncompliance – Reasonable Rental Rates Documentation Compliance Requirement: Reasonable Rental Rates Criteria – Per 24 CFR 578.49(b)(1) and (b)(2), and 24 CFR 4578.51(g) and (j), the Organization must determine that federal funds used to pay for rent must be reasonable according to federal guidelines. The Organization must document its evaluation of the reasonableness of any rental rates that utilize federal funds. Condition – The Organization did not formally document its evaluation of the reasonableness of rental rates. Cause – Lack of documentation to evidence compliance with program requirements. Effect – By not maintaining documentation to evidence the Organization’s evaluation of the reasonableness of rental rates, the Organization may not be in compliance with federal or grant award provisions and may be at a risk of losing federal funding. Questioned Costs – None noted. Context – The Organization should have maintained documentation for all rental agreements to evidence its evaluation of the reasonableness of rental rates. Recommendation – We recommend management maintain documentation that evidences its compliance with reasonable rental rate activities in accordance with federal and grant award provisions. Management’s Response – Management concurs with the finding, see Corrective Action Plan.